Auditor exposes NMS failure to complete city county projects

The Auditor General has called out the defunct Nairobi Metropolitan Services (NMS) over anomalies and non-completion of various projects including the construction of 19 hospitals in Nairobi county.

 In a report covering the national government, ministries, departments and agencies for the year 2021/22, the auditor general warned that despite the Ministry of Health entering into a contract for the construction and equipping of ten level two and nine level three health facilities in Nairobi County at a contract sum of Sh869.4 million, four health facilities  were yet to be completed and no contract extension or reasons for the slow progress of work was provided despite full payment being done.

The four include Sinai, Pumwani Majengo, Lucky Summer and Gumba/Mabatini which are at 85 per cent, 15 per cent, 10 per cent and five per cent completion levels, respectively.

 The contract, which was to be implemented within ninety days, was awarded to AMREF Health Africa after it obtained a license as a procurement agent for the Ministry of Health, which then appointed a contractor to construct and equip the nineteen health facilities at a cost of Sh900 million.

 The queries come after then President Uhuru Kenyatta ordered the NMS, headed by Director General Mohamed Badi, to construct 28 hospitals in Nairobi county to decongest Kenyatta National Hospital, Mama Lucy, Pumwani and Mbagathi hospitals.

 “In the circumstances, it was not possible to confirm whether the value for money for the expenditure of Sh869,400,000 incurred in the construction of the health facilities was realised,” adds the report.

 The Auditor General also took issue with other projects initiated by the NMS including the Procurement of Street Lights, rehabilitation of Jeevanjee Gardens, Construction of Kamitha Road, as well as the construction of Water Sewer Extensions and Street Lighting.

Audit revealed

 On the rehabilitation of Jeevanjee park at a cost of Sh15 million that was to be done in-house by NMS for four months commencing February 25, 2020 and ending on November 22, 2022, the audit revealed that the project was still incomplete despite payments having been made in full.

NMS had procured materials, some of which were still on site and exposed to theft.

“The project was behind schedule and value for money for the expenditure incurred on the project may not be realised,” reads the report.

 On the construction of Kamitha Road at a contract price of Sh52.8 million, the Auditor General noted that an audit verification of the project on February 9 this year, revealed that although the contractor laid the inverted block drainage, the drains were silted causing the culverts to block completely while the headwalls did not have plaster finish as provided for in the bill of quantities.

Value for money

The Auditor General said that a road section between World Hope Stadium and the Lavington Estate had fresh asphaltic concrete, an indication that the contractor had not properly compacted the base while there were no road markings and road signs.

 “In the circumstances, value for money on the funds used in the construction of the Kamitha Road could not be confirmed,” adds the report.

 On the water sewer extensions and street lighting project which NMS entered into a contract with a contractor in 2021 to expand water sewer and street lighting in Dandora, Kangemi, Kawangware, Dagoretti Corner,

Waithaka, Riruta, Kibera, Korogocho, Mathare, Zimmerman, Thome, Githurai 45 Mwihoko, Kasarani and Mwiki at a contract sum of Sh 4.5 billion, she regretted that despite Sh1.6 billion being paid in the 2021/2022 financial year and an advance of Sh447.6 million paid out in the 2020/2021 financial year, the average combined progress of work was at 30 per cent as per the Contract Implementation Team (CIT) site meeting held on May 27 this year.

“The contractor was behind schedule and no explanation or evidence of extension of the contract was provided. In the circumstances, the delayed completion of the project casts doubt on the realisation of value for money incurred in the Project,” adds the report.